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Options Strategies For Advisors

Financial Advisor Options Strategies by admin

Options Strategies for Portfolio Managers

How should a financial advisor choose an appropriate options strategy for their clients? This would depend on the purpose of the options. For example, if an advisor is long stock, there are various ways to offer protection for client accounts in case of a market crash.

 

Bearish Options Strategies

Some bearish strategies could include back ratios, unbalanced spreads and the use of long puts.

 

Structure of Options Spreads

There are other ways to protect the downside with options too, such as designing a spread with options that has the downside protected by structure. In this case, there is no need to buy puts, etc.

 

Manage Vega, Volatility and Price Correlations

When trading options over bearish markets, it’s crucial to understand Vomma and Vanna – the higher order Greeks used for managing Vega. There are techniques portfolio managers can use to dynamically hedge their Vega. As markets fall fast, implied volatility rises. This means any negative Vega or Vomma will result in large draw downs. Learn to avoid such scenarios through our education on higher order Greeks and managing Vega.

 

Benefits of a Good Trading System

Long stock has its benefits during a long, bullish run, which we see quite often. But as we all know, often times a bullish move is followed by a fast and furious falling market. When the portfolio manager uses the buy and hold method, they give up large gains when this happens. In fact, some managers can lose 50% AUM when the market collapses, such as in 2008. Through a better design, portfolio managers could essentially profit from any direction in the market.  This can be accomplished through well-designed option spreads and a scientific adjustment plan.

 

Options Strategies for Portfolio Managers

Over the last decade we have been designing manager-quality option strategies. Through our extensive trading experience, software development and knowledge of higher order Greeks, we’ve been able to achieve the “unachievable” with options. In 2014, 2015 and 2016 we advanced our methods so far that we completed a ridiculous amount of consecutive winning trades (123) before incurring our first loss of only 1.1%.

We’d like to help you.

Our decade of experience in options trading education has taught us that portfolio managers need our help.  While there are many educators available to teach you, we are your best choice.  We can’t tell you how many market makers and competitors come to us for education.

We are the only program that can teach you higher order Greeks and provide you with the software tools you need to succeed.  We redesigned options software completely – not because we wanted to, but because we had to.

We do not teach unsafe trading methods such as credit spreads, condors, calendars, diagonals, covered calls, naked puts, naked calls, etc. With SJ Advisor you will learn exactly what you need to improve the bottom line of your AUM.

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